Restoring Trade Fairness Act

This bill aims to fundamentally alter trade relations with the People's Republic of China by suspending its normal trade relations (NTR) status. This action will subject merchandise imported from China to significantly higher duties, generally aligning with the rates set forth in column 2 of the Harmonized Tariff Schedule of the United States (HTS). The legislation asserts that China's continued NTR status poses an unacceptable national security threat and undermines efforts to build resilient supply chains and economic integration with U.S. allies. Specifically, the bill mandates that the President revise the HTS to apply column 2 rates to Chinese goods, with a minimum ad valorem duty of 35 percent for most items. For a specified list of critical articles, including certain advanced machinery, electronics, and military-related goods, the minimum ad valorem duty will be increased to 100 percent . These duty increases will be phased in over a five-year period, starting with 10 percent after 180 days and reaching 100 percent after five years. For articles imported exclusively from China, the President is directed to establish tariff-rate quotas based on the difference between U.S. consumption and production, with above-quota imports facing a 100 percent ad valorem duty. The President is also granted additional authority to further increase duties, establish quotas to reduce reliance on Chinese imports, or outright prohibit imports deemed a national security threat, unfair trade practice, or human rights violation. The bill also requires merchandise from China to be appraised based on its "United States value" for customs purposes. A dedicated trust fund will be established in the Treasury, funded by the increased duties collected on Chinese imports. This fund is intended to compensate U.S. producers, particularly in agriculture and critical sectors like semiconductors and aircraft, for any retaliatory actions taken by China. Any remaining funds in the trust after compensation will be directed to the Department of Defense for the acquisition of specific munitions to bolster the defense of Taiwan and other Indo-Pacific allies. Furthermore, the bill eliminates the duty-free de minimis entry exemption for articles originating from China, effective 15 days after enactment.